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Business (LC) > Chapter 20 - Marketing > Flashcards

Chapter 20 - Marketing Flashcards

1
Q

What is the marketing concept?

A

It ensures that the business always focuses on the needs and wanted of consumers first before developing goods and services

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2
Q

What are the 3 steps required in marketing?

A
  1. Conduct market research
  2. Develop a marketing strategy and plan
  3. Formulate a marketing mix
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3
Q

What is a marketing strategy?

A

It examines the overall business objectives and develops marketing activities to help the business to achieve these goals

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4
Q

What is a marketing plan?

A

It is used to implement the firms marketing strategy

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5
Q

What should the business do in order to create an effective marketing plan?

A

Conduct a SWOT analysis
Market segmentation - decide market
Research target market - find out needs and wants
Develop a marketing mix - product, place, price, promotion

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6
Q

What is the role of the marketing plan in business?

A

Helps focus on business goals
Helps obtain finance
Benchmarking

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7
Q

What is benchmarking?

A

Setting a standard and comparing performance against this standard

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8
Q

What is market segmentation?

A

Dividing the market into different sections - it enables the firm to target its products and services more effectively.

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9
Q

What are the 3 market segments?

A

Geographic - separated by location
Demographic - separated by age,gender,income
Psychographic - separated by beliefs,lifestyle,attitude,social status

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10
Q

What are 3 benefits of market segmentation?

A

Increased sales - product meets consumers needs or wants therefore people will buy it
Market share - allows business to grow as it is focusing its goods and services on a small group of people
Lower costs - don’t waste time and money making products nobody wants

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11
Q

What is a target market?

A

The specific group of consumers at who a business aims to sell its goods and services to

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12
Q

What is a niche market?

A

A small group of consumers in a larger market who have different needs from the majority of consumers

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13
Q

What are the advantages and disadvantages of the niche market?

A
  1. Less competition
  2. Consumer loyalty
  3. Easier to launch new products
  4. Don’t benefit from Economies of scale
  5. Larger competitors may take customers
  6. Difficult to grow
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14
Q

What is product positioning?

A

Creating a positive image for the product that stays in consumers minds.

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15
Q

Give an example of product positioning.

A

Fairy washing up liquid last 50% longer than other brands

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16
Q

What is product?

A

A good or service

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17
Q

What is a marketed product?

A

A good or service that meets consumers needs and wants

Usually has a USP

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18
Q

What is a product portfolio?

A

The range of products sold by a business

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19
Q

What 4 elements are involved in product marketing?

A

Product design
Brand name
Packaging
Product life cycle

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20
Q

What 5 things should be considered when designing a product?

A

Function - what’s its purpose
Materials - are they ethically sourced
Manufacturing - where is it made
Appearance - does it look attractive to consumers
Cost - how much does it cost to manufacture. Can a profit be made.

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21
Q

What are the impacts of good product design?

A

Increased sales

Lower costs

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22
Q

What is a patent?

A

Gives exclusive ownership rights to the inventor of a product or process. No one else can use it without the agreement of the patent owner

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23
Q

How long does a patent last?

A

20 years

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24
Q

What is a brand name?

A

A distinctive name given to a business and the goods and services it develops

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25
Where is a brand name registered?
The Irish patents office
26
What is a trademark?
Registered words for businesses like logos, slogans, letters, numbers
27
What are the advantages of brand names for businesses and consumers?
1. Recognition 2. New products 3. Higher prices 4. Consumer loyalty 1. Consumer image (consumers worry how they look with it) 2. Benefits of the product 3. Reduces disappointment 4. High quality products
28
What are own brand products?
Products that are sold by retailers under the retailers name and logo
29
What are the advantages and disadvantages of own brand products?
1. Product specification - retailer decides how it looks, what’s in it 2. Profits 3. Consumer loyalty 4. Different target markets reached 1. Invest in more advertising 2. Business reputation risked 3. Cost 4. Economic conditions - if good people will opt for branded products
30
What are the functions of packaging?
``` Product protection Image Convenience Information Recognition ```
31
What are the 5 stages of the product life cycle?
``` Introduction Growth Maturity Saturation Decline ```
32
Describe sales during the 5 stages of the product life cycle.
``` Introduction - sales are low Growth - sales are rising Maturity - sales are at its peak Saturation - sales lower as more competitors appear Decline - sales are declining ```
33
How can a business extend the product life cycle?
Improve or rebrand the product Change the price Change where it is sold Promote it through new advertising campaigns
34
What is rebranding?
Changing the name, logo, image of a firm
35
What are the 3 types of low pricing strategies?
Penetration pricing Predatory pricing Loss leader
36
What is penetration pricing?
Business sets price lower than competitors in order to break into the market. They then raise the price when they are in the market
37
What is predatory pricing?
Business set price lower than that of competitors to push them out of the market
38
What is loss leader?
Business sets price below cost price. Firm hopes consumers will visit their shop and buy other items when there
39
What are 2 types of high pricing strategies?
Premium pricing | Price skimming
40
What is premium pricing?
Business charges higher price than competitors in the market - gives impression that their goods are superior
41
What is price skimming?
High price is charged at the beginning so that the business can recover their costs quickly before competitors enter the market
42
What are 5 types of other pricing strategies?
``` Psychological pricing Mark up pricing Tiered pricing Price discrimination Bundle pricing ```
43
What is psychological pricing?
Price impacts consumers emotions rather than common sense e.g. €4.99 instead of €5
44
What is mark up pricing?
Business adds a profit percentage to the cost price of an item
45
What is tiered pricing?
Consumers choose the price that fits their budget e.g. selling different versions of something, cheaper it is the more basic and the more expensive the more advanced
46
What is price discrimination?
Different prices for different segments of the market e.g. student discounts, oap discounts
47
What is bundle pricing?
Business sells multiple items together for a lower price than they would cost separately
48
What are 5 factors that influence price?
``` Cost to make the item Competitors prices Stage of product life cycle Product image e.g. premium pricing for something of luxury Consumer demand ```
49
What is a wholesaler?
They buy in larger quantities from producers and sell to retailers in smaller quantities
50
What is an agent?
They sell the producers goods and services in a particular area
51
What is a retailer?
They buy products from wholesaler or producer and tell to consumers
52
What are the four channels of distribution?
Producer - wholesaler - retailer - consumer Producer - retailer - consumer Producer - agent - consumer Producer - consumer
53
What are the advantages and disadvantages of producer - wholesaler - retailer - consumer?
1. Can reach a larger target market 2. Consumer convenience 3. Simplifies distribution 1. Cost 2. Can’t get consumer feedback 3. Profits are shared
54
What are the advantages and disadvantages of producer - retailer - consumer?
1. Larger target market 2. Lower prices 3. Promotion 1. Discounts for retailers 2. Transport costs 3. Copycat products (own brand product)
55
What are the advantages and disadvantages of producer - agent - consumer?
1. Target market 2. Lower costs 3. React to change 1. Loss of control 2. Loyalty of agent may be to another business 3. Costs
56
What are the advantages and disadvantages of producer - consumer?
1. Profits 2. Consumer feedback 3. Consumer awareness 1. Costs 2. Expertise 3. Time consuming
57
What factors affect the channel of distribution?
``` Cost Nature of product Target market Business image Market size ```
58
What is promotion?
Used to increase consumer awareness of the brand and the goods or services that it sells. It uses techniques to persuade the consumers to buy their products over competitors
59
What are the four methods of promotion?
Advertising Sales promotion Public relations Personal selling
60
What are the 5 types of advertising?
Informative advertising - gives information about the product Reminder advertising - reminds consumers about brand and products Persuasive advertising - persuades consumers they need the product Generic advertising - advertising goods or services rather than brand or company Comparative advertising - comparing to competitors
61
What are the advantages and disadvantages of advertising through tv?
1. Possible to reach a large target market 2. Detailed information can be shown using images 1. Expensive 2. Viewers can switch channels
62
What are the advantages and disadvantages of advertising through radio?
1. Cheaper than tv 2. More effective way to reach target market 1. Easy to forget 2. Competition
63
What are the advantages and disadvantages of advertising through newspapers?
1. Cheaper 2. Reach a local target market 1. Few people read the newspaper 2. Short life shelf
64
What are the advantages and disadvantages of advertising through social media?
1. Large target market 2. Ability to interact directly with consumers 1. Trolls can damage reputation 2. Limited to social account
65
What are the advantages and disadvantages of advertising through business website?
1. Business can control information 2. Relatively cheap 1. Hacking 2. Technology has to be updated regularly
66
What factors affect the type of advertising medium?
Cost Type of product or service Target market Stage of product life cycle
67
What are examples of sales promotion?
``` Loyalty cards Special offers Free samples Discount codes Merchandising e.g. window displays, posters ```
68
What is sales promotion?
Short term gimmicks used to attract consumers
69
What are public relations?
A marketing technique used to create a positive public image for a business
70
What are pr methods of promotion?
Sponsorships Endorsement Press communication Charities
71
What is personal selling?
Sales staff meet consumers face to face to sell their products
72
What two firms protect consumers against wrongful advertising?
Competition consumer protection commission | Advertising standards authority of Ireland

Business (LC) (23 decks)

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